The African Development Bank (AfDB) is set to disburse $540 million to kickstart the development of Special Agro-Industrial Processing Zones (SAPZs) in Nigeria.
This initiative comes amidst calls for action from Vice President Kashim Shettima, who urged the government and its development partners to translate words into action.
AfDB’s spokesperson, Banji Oyelaran-Oyeyinka, disclosed this on Monday when a delegation of the bank and that of the United Nations Industrial Development Organization (UNIDO) presented their separate reports on the status of projects being executed in Nigeria at the Presidential Villa.
The SAPZs project aims to transform rural areas into economic hubs by harnessing the potential of commercial agriculture and food processing.
“The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria,” Oyelaran-Oyeyinka said.
In the first phase of the project, three states – Oyo, Kaduna, and Cross River – will receive immediate funding. Other states are expected to follow suit once they finalize their documentation.
“We raised $540,000,000 in catalytic funding and we expect every state to find a partner that will bring equity and join up with them. It is a government-enabled project but private-sector driven,” he added
The initial phase, according to him, covers seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, along with the Federal Capital Territory (FCT). Ogun State, however, opted to find a partner independently.
“Ogun state found a partner for the project and decided not to take the loan. We are basically going to distribute the loan to the other states.”
He also disclosed that the next stage will focus on 27 states, adding that the demand is enormous but it has to prioritize those who move fast.
“We have set up eligibility criteria for the states and to rank them. We expect them to have a feasibility report, environmental impact study and a commitment to counterpart funding,” Oyelaran-Oyeyinka added.
